The Dubai office market, recognized for having some of the highest occupancy rates in the world, is projected to experience a significant supply shortage until 2027-2028, according to real estate consultants. According to Khaleej Times, new office supply is expected to double in 2025 compared to 2024, increasing by 1.66 million square feet. Despite this increase, the market will remain undersupplied due to persistent high demand.

The Dubai International Financial Centre (DIFC) is set to contribute nearly one-third of the total city-wide office supply over the next three years, most of which is expected to be pre-leased. The continued high demand for office space is largely attributed to the influx of new businesses and foreign companies drawn to Dubai, which serves as a key trade, tourism, and financial hub in the region.

Dubai currently boasts the second-highest global office occupancy levels at 92 percent, and this figure is anticipated to surpass 94 percent by the end of 2025. Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core, noted that office rents surged by 22 percent year-on-year in 2024, with further increases of 10 to 12 percent forecast for 2025. This ongoing demand is primarily driven by the growth of new businesses and the expansion of existing tenants in the market.

Robert Thomas, Head of Agency at Cushman & Wakefield Core, commented on the current market dynamics, stating, “We’re seeing an incredible surge in demand for office space in Dubai, with more companies entering the market and existing tenants looking to expand.” He further explained that while the supply pipeline looks promising this year, much of it is either pre-leased or concentrated in specific free zones, contributing to the existing pressure on availability.

According to real estate consultancy Savills, Dubai’s commercial real estate market maintained strong momentum in 2024, with notable growth observed in both the office and industrial sectors. The consultancy highlighted that the demand for premium Grade A office spaces continues to outstrip supply, particularly in key business districts such as DIFC, Business Bay, and Downtown, where occupancy rates are near full capacity, with DIFC reaching 96 percent by year-end.

The Dubai Chamber of Commerce reported that over 51,000 businesses have become its members, reflecting the robust economic activity in the region. Toby Hall, head of commercial agency at Savills Middle East, noted the adaptability of the office market, stating that “with Grade A office spaces witnessing record-low rates in prime districts such as DIFC, and upcoming supply in emerging areas like Dubai South and Expo City, the market is adapting to meet sustained demand.” He emphasized the strong leasing activity driven by the Financial Services and Technology sectors, highlighting Dubai’s capacity to meet international business needs while advancing sustainable development initiatives.